This is a guide for investors and homeowners who want to understand how much they’ll pay, depending on their home location. Location and home value are significant factors in property tax amounts.
While you might pay just $560 per year in property taxes for a small home in Alabama, you could be on the hook for more than $8,000 per year in New Jersey for a median-priced home.
On average, though, Americans pay an average of $2,375 in property taxes each year according to data from the U.S. Census Bureau.
Property taxes are a percentage of a property’s taxable value. They are collected and used by local, state, or municipal governments to fund schools, safety, utility plants, and community projects.
Keep reading to discover if there are states with no property tax, which states have the lowest and highest property taxes, and how much residents of each state pay in property taxes for a median-priced home.
States With No Property Tax
There are no states with no property tax, but some states have very low property taxes and low median home prices. Before we look at the list of property tax amounts by state, it’s important to understand how these amounts are calculated.
How Are Property Taxes Calculated?
Property tax rates are difficult to compare because they are different for most counties within a state. Some local governments use different methods to calculate property tax rates than others. This makes it a challenge to look at two states’ averages side by side.
In general, each county (or the state’s taxing jurisdiction) will look at the property in question and determine the “real property value,” or the amount the property would sell for today.
Others base property taxes not on the current value of the property, but on the price the owners paid when they purchased it.
Some counties will also include the amount of income a given property could bring in to determine the effective tax rate. The tax jurisdiction also determines how often they will reassess the property to adjust the property tax rate.
Property Tax Rates by State
Although there is some variance in the actual property tax rates within and across the different states, we can compare each state’s property taxes by looking at the effective property tax rate.
This rate is calculated by looking at the amount of a state’s property taxes paid every year as a percentage of the total value of occupied homes within each state.
Let’s look at a list of all states and their effective property tax rates and average annual amounts, from the lowest to the highest.
1. Hawaii (0.27%)
Hawaii has the lowest effective property tax rate at 0.27%. Homes are expensive in Hawaii, however, so the low property tax rate balances it out. The median home price in Hawaii is $587,700. Each year, Hawaiian residents might pay around $1,586 in property taxes, even with the very low effective tax rate.
2. Alabama (0.42%)
Alabama also boasts a meager property tax rate. Coupled with the low median home prices in the state ($134,300), Alabama is a very affordable place to own a home – residents of a median home may only owe $564 in taxes annually.
3. Louisiana (0.52%)
Louisiana has the third-lowest property tax rate in the United States and has a low median home price of $147,600. An annual property tax bill on a median home here would be $767.
4. Colorado (0.55%)
Colorado has a property tax rate not much higher than Louisiana’s, but the median home prices are much higher at $381,300. This makes the median property tax amount $2,097 annually.
5. District of Columbia (0.55%)
Washington DC has low property tax rates that may seem extremely affordable, but with the District’s median home price of $568,400, even .55% of a property’s value can get quite expensive at about $3,126.
6. Delaware (0.56%)
Delaware charges residents no sales tax, and still has one of the top 10 lowest property tax rates in the United States. The median home price here is $236,300. The annual median property tax amount is $1,323.
7. South Carolina (0.57%)
South Carolina median home values are closer in line with states like Alabama and Louisiana at $170,700. A resident might owe $972 each year in property taxes.
8. West Virginia (0.59%)
West Virginia has just slightly higher property tax rates than South Carolina, but an even lower median home price of $99,000. A homeowner with a $99,000 home could pay just $584 in property taxes each year here.
9. Wyoming (0.61%)
Wyoming residents pay no income tax, and the median home price is $236,300. It’s not as cheap to live here as in West Virginia, Louisiana, South Carolina, or Alabama, but it’s still an affordable state overall.
10. Arkansas (0.63%)
Arkansas has a property tax rate that is comparatively low, and coupled with the affordable median home price of $129,500, homeowners and investors can affordably buy homes here without being burdened by excessive property taxes – the median is $815 per year.
11. Utah (0.66%)
Utah homes are higher-priced at a median price point of $351,100, but the state does not charge its residents personal property taxes and is among some of the lowest property tax states. Annual property taxes on a median home are $2,317.
12. Nevada (0.69%)
Nevada property taxes are not within the top 10, but still noteworthy if you’re looking for an affordable place to buy a home. Median home prices in Nevada are $291,800.
13. Arizona (0.69%)
Arizona and Nevada have a .69% property tax rate, but in Arizona, the median home price is much lower at $209,600. The property tax rate here does vary and can be up to 1.5% of a home’s market value.
14. Idaho (0.72%)
Idaho residents pay a relatively low property tax on homes where the median price is $192,300. This equates to about $1,384 for the median home price in Idaho.
15. Tennessee (0.73%)
Tennessee property taxes are still well below 1%, and the state’s median home price of $158,600 makes this another very affordable state to own property in with a median home having $1,157 in property taxes owed per year.
16. California (0.76%)
California has a property tax rate not much higher than the State of Tennessee, but it’s much higher median home price ($475,900 compared to $158,600) makes California a more expensive place to own property.
17. New Mexico (0.79%)
New Mexico has a median home price of $166,800 and a relatively low property tax rate. It is listed as one of the most affordable states to live in by the World Population Review.
18. Virginia (0.81%)
Virginia property taxes are slightly higher than New Mexico, as well as having a higher median home price of $264,900.
19. Mississippi (0.81%)
Mississippi was named the overall “cheapest state to live in” by World Population Review. The median home price here is $114,500, so even with a slightly higher property tax rate, the state is still very affordable despite being number 19 on the list.
20. Montana (0.84%)
Montana has comparatively low property taxes (the national average is 1.08%), and homes here are slightly lower than the national median home price at $219,600 (the national median home price is $226,800).
21. North Carolina (0.85%)
North Carolina homes are very affordable, with a median price of $165,900. With the property tax rate of .85%, North Carolina property owners are paying comparatively fewer property taxes than many state residents across the U.S.
22. Kentucky (0.86%)
Known as one of the top 20 most affordable states to live in, Kentucky homes are priced around $135,300 (median), and the property tax rate is low enough to keep it in the top half of the United States for lowest property tax rates.
23. Indiana (0.86%)
Indiana shares the same property tax rate as Kentucky. They nearly share the same median home price as well, with Indiana homes’ median price just $100 more than Kentucky’s at $135,400.
24. Oklahoma (0.90%)
Oklahoma residents pay .90% of their home’s market value in property taxes each year. Although the rate is not among the lowest in the United States, the amount of property taxes paid is – the median tax paid is $1,129 annually for homes around $130,900.
25. Georgia (0.91%)
Georgia’s median home prices are higher than Oklahoma, Indiana, and Kentucky, as well as a slightly higher property tax rate. The median home price here is $166,800, so property owners end up paying about $1,413 per year in property taxes.
26. Florida (0.93%)
Florida is the state that starts the second half of the list – the more expensive property taxes in the states. Median home prices here are higher at $196,800. Sunshine State residents pay about $1,752 in property taxes each year.
27. Missouri (0.97%)
Missouri homes are not as pricey as Florida homes at a median price of $151,600. This balances out the slightly higher property tax rate in this state to result in an annual tax paid even lower than Florida’s at $1,435 annually.
28. North Dakota (0.99%)
North Dakota’s property tax rate is right on the line, nearly 1%. The median price of a home is $185,000, which is still below the national median home price. This makes the property tax amount paid yearly in North Dakota still affordable at around $1,831 per year.
29. Washington (1.01%)
With a higher median home price and a property tax rate of over 1%, Washington is not known as one of the more affordable states to own property in. The median home here costs $311,700. This means residents might pay a whopping $3,148 in property taxes each year.
30. Oregon (1.01%)
While homes in Oregon are not as expensive as the median home price in Washington, they’re still among some of the highest on the list at $287,300. Expect to pay about $2,900 in property taxes here.
31. Maryland (1.09%)
With both a higher median home price ($305,500 compared to $287,300) and property tax rate (1.09% compared to 1.01%) than Oregon, Maryland’s property taxes can be costly. A resident might pay $3,329 per year in property taxes here.
32. Minnesota (1.13%)
Minnesota residents pay about $2,393 in property taxes on the state’s median home price of $211,800.
33. Alaska (1.18%)
Alaska has higher property tax rates and median home prices. The median home price in the state is $265,200, so Alaskan residents find themselves paying about $3,129 in annual property taxes.
34. Massachusetts (1.23%)
Massachusetts has some of the highest property tax rates in the nation. With an elevated median home price ($366,800), the median property tax rate here is $4,511.
35. South Dakota (1.32%)
Much higher than its northern counterpart North Dakota, South Dakota has both higher home prices and property tax rates. The median price of a South Dakota home is $159,100, much lower than the national average. So property taxes might be around $2,100 annually here.
36. Maine (1.36%)
The median price of a Maine home is $184,500, which is also well below the national median home price. However, the higher tax rate here makes the annual amount many residents pay somewhere around $2,509.
37. Kansas (1.41%)
Kansas has the same median home price as Maine, but a slightly higher property tax. Residents end up paying about $2,601 in annual property taxes here.
38. Iowa (1.56%)
Iowa surpasses 1.5% and goes straight to 1.56% for its property tax rate. Median home prices in Iowa are $142,300, so plan on paying around $2,200 per year in property taxes.
39. Michigan (1.58%)
Slightly higher property tax rates and median home prices make Michigan’s median annual property tax amount about $2,309.
40. Ohio (1.58%)
Lower than the national average, median home prices of $140,000 mean Ohio residents pay about $2,212 in property taxes annually.
41. Pennsylvania (1.59%)
Expect to pay around $2,768 each year in Pennsylvania property taxes. The median price of a home is $174,100, which is well below the national average but higher than many states.
42. Rhode Island (1.66%)
Rhode Island has a median home price that is higher than average at $249,800. Residents pay about $4,146 in property taxes each year.
43. New York (1.71%)
New York has some of the most expensive property tax rates. The median home price is $302,200, so New York residents pay around $5,167 in property taxes each year.
44. Nebraska (1.77%)
Nebraska has a median home price of $147,800, so its residents pay about $2,616 each year in property taxes. While Nebraska has a high property tax rate, the below-average median home price does not make this one of the most expensive states to own property in.
45. Texas (1.81%)
Like Nebraska, the Texas median home price of $161,700 is well below the national median, but its higher property tax rate brings the median amount paid by residents to about $2,926.
46: Vermont (1.88%)
Vermont residents pay about $4,205 per year in taxes on homes with a median price of $223,700 in the State of Vermont.
47. Wisconsin (1.91%)
While Wisconsin homes are not priced above average (the median price is $173,600), Wisconsin has one of the highest property tax rates in the nation. Residents pay about $3,315 in taxes on property here each year.
48. Connecticut (2.11%)
Homes priced higher than the nation’s median price at $272,700 coupled with the 4th-highest property tax rate in the country mean Connecticut residents owe about $5,753 in property taxes annually.
49. New Hampshire (2.20%)
The home of the 3rd-highest property tax rate in the United States and a high median home price ($252,800), New Hampshire is not an inexpensive place to own property. Expect to pay about $5,561 in annual property taxes in this state.
50. Illinois (2.30%)
The median price of homes in Illinois is not high compared to other states in the country, but the property tax rate of 2.30% is the second-highest in the nation. Homes are priced around $187,200, so Illinois residents pay about $4,305 in property taxes each year.
51. New Jersey (2.47%)
The most expensive state to own property in the United States is New Jersey. A high median home price of $327,900, coupled with the highest property tax rate in the country, creates an annual tax bill for many residents that is around $8,099.
States With No Property Tax
While there are no states with no property tax – every state charges some kind of property tax to fund state, county, and municipal programs and schools each year – there are many states with meager property tax rates.
From the lowest property taxes in the nation (Alabama) to the most expensive (New Jersey), property taxes vary widely across the United States.
If you’re looking for an inexpensive property that you won’t owe thousands of dollars in taxes on each year, don’t just pay attention to the effective property tax rate. You should also look at the median price of homes in the state.
For example, Colorado and Hawaii are high up on the list for having low property taxes, but their much higher median home prices mean you’ll be paying more than you think in taxes annually.
This is important for both homeowners and real estate investors to consider. States like Alabama, Louisiana, South Carolina, West Virginia, and Arkansas have some of the most affordable property taxes.
You may not be able to find a property that you won’t have to pay any taxes on annually, but if you do your research, you can limit the amount you have to pay from upwards of $8,000 down to less than $600.